The Latest Paper Gold Scheme That Is Destined to Fail

The Latest Paper Gold Scheme That Is Destined to Fail by Rory – The Daily Coin

It appears that Turkey’s Deputy Prime Minister Mehmet Şimşek has taken a page from the Bank of India’s playbook to steal the gold from it’s citizens. The Turkish Treasury has issued two bonds in an attempt to dislodge 2,200 tons of gold from the hands of the Turkish people. Is this another attempt to by an SCO, BRI member to acquire the gold necessary to participate in these alliances spearheaded by China?

As Alasdair Macleod recently explained this would be one of the stronger reasons behind India’s ongoing attempts to acquire gold from their citizens. What would happen, for example, if these one of these two nations put out a bid for 500 tons of gold in the open market? WOW! Talk about fireworks! For this reason, it seems logical for Turkey to follow in the footsteps of India to at least attempt to steal, I mean acquire, some of the people’s gold.

The Turkish Treasury will issue two types of bonds to attract 2,200 tons of gold stashed under mattresses into the economy, which has a market value of around 300 billion Turkish Liras, Deputy Prime Minister Mehmet Şimşek has said.

“The first issuance of gold bonds and the gold-based rent certificates will begin between Oct. 2 and 6 in an attempt to benefit the economy with the under-the-mattress gold of citizens, which is estimated to be almost 2,200 tons in total,” Şimşek said in a statement on Sept. 17.

The deputy prime minister said on Sept. 18 during an interview broadcast on Bloomberg HT and Habertürk that the issuance of gold price-linked bonds was not related to the Treasury’s need for debt.

“The Treasury has no borrowing problem. We will dare this cost for the economy to run faster, to increase savings and solve resource problems as well as bring out the under-the-mattress savings into the economy,” he said.

Experts at Turkey’s state-run Ziraat Bank will mark the real value of the gold savings of citizens and access equivalent bonds in return, he said.  Source

The Turkish people have a long history of keeping gold as wealth protection from their governments ill conceived ideas about currency and money. Just as the Indians have suffered economic and monetary madness at the hands of whoever is running the government, the Turks have similar history. For this reason, and many others, we see this attempt as being an utter failure just like it has been in India. People that hold gold for wealth preservation and as armament against governments monetary madness will not simply hand over their gold for a different type of government issued monetary script. That is the very reason most gold bugs hold gold in the first place; but the governments try and try to paint the same picture with a different brush.

This whole situation in Turkey, as a primarily muslim country, will make the Indian attempt look like a complete success. Muslims, under the dogma of their religious beliefs, are forbidden to use financial instruments that pay/generate interest. Not to worry, the Deputy Prime Minister has this aspect well under control.

“Rent certificates based on gold,” a financial tool similar to sukuk bonds, aims to lure citizens who are against benefiting from interest rates, Şimşek said on Sept. 17.

Interest rates are forbidden in Islamic banking because they are prohibited by the religion.

The bond sale will first start in Istanbul but eventually will be practiced in every province of Turkey, declared Şimşek. Source

The article goes on to state how the Turkish economy will be filled with endless rainbows and unicorns, similar to the nonsense we are fed here in the U.S. Of course, with a promise of returning the gold if the citizen so desires.

“These relevant two instruments will have positive effects on the economy in the long term. They will decrease our external dependence with regard to our source need, which is necessary in the growth of the economy,” he said.

“Their investments are also going to turn into savings under the guarantee of the government,” said Şimşek.

“This procedure is similar to the situation when our people sell their gold, which they keep in their houses, when the need arises and turn it into cash. On top of it, they can even receive the gold return which has accrued until the date they sell it, in terms of the lira,” he said. Source

Once again this shows the depths of incompetence we are dealing with when it comes to government “officials”. This will fail just like the attempts in India have failed. People hold gold to avoid government issued illusions of wealth. People that hold physical gold have made a conscious choice to convert their illusions of wealth into hard assets that have preserved wealth for several millenniums with no sign of that changing anytime soon. What makes Turkey’s government believe they have found the key to dislodging gold from people that do not trust their government in the first place?

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.